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ARTICLE H.48. AWARD OPTION



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ARTICLE H.48. AWARD OPTION


  1. Award Option Contract

    This Contract contains Award Option(s). The Contractor is not entitled to the exercise of any Award Options solely by meeting the criteria of the Quality Assurance Surveillance Plan (QASP). The Award Option evaluation serves as a precursor to the Government exercising its unilateral rights in accordance with FAR Part 17.2.  A successful Award Option evaluation precedes the Government's review and determination to exercise or not to exercise the Award Option, in accordance with FAR Part 17.2.  There is no guarantee the Government will continue Performance beyond the base performance period.



    Award Option(s) will be exercised based on the criteria set forth below, and the final decision whether to exercise the Award Option(s) will be made annually and is at the sole discretion of the Contracting Officer.  If the Contracting Officer determines that the standards for the Award Option have been met, and the Government exercises its option, the estimated cost [plus fixed fee] will be increased as set forth in the ESTIMATED COST, [FIXED FEE] AND AWARD TERM Article in SECTION B of this contract.
     

  2. Award Option Provisions

    1. This contract has a base performance period of     years                                                                                  . The Contractor will have the opportunity to earn additional     years of work                                                                                   using the evaluation process described herein. These additional years of work are called Award Option(s). The total duration of this contract, including all Award Option(s), shall not exceed a period of     years                                                                                  .
       

    2. A unilateral contract modification to add the Award Option may be issued when scoring meets or exceeds that set forth in the contract.  The Award Option determination and the methodology for determining the award option are unilateral decisions made solely by the Government and are not subject to dispute.
       

    3. Quality Assurance Surveillance Plan (QASP)



      1. The Contractor's performance under this contract will be observed and evaluated continuously by the Government. The Contractor Assessment Report will be used to assess Contractor performance and determine whether the Contractor will receive Award Option(s). The Contractor Assessment Report includes Performance Indicators and Standards which identify the indicators to be evaluated and the associated standards for each indicator. A copy of the "Contractor Assessment Report/Performance Indicators and Standards," dated                     is included as an attachment in SECTION J of this contract.
         

      2. The "Contractor Assessment Report/Performance Indicators and Standards" will be prepared by the Government, resulting in an overall rating which will be disseminated to the Contractor annually. The Award Option earned will be determined based upon review of the Contractor's performance against the performance indicators and standards as follows:



        1. [ Using the 0-5 point score in the Plan, the Contractor must receive an average of 3.5 or better for the first three years of Contractor performance. In years four and five, the Contractor must receive an average of 3.8 or better in each year to earn the Award Option.] These goals are intended to be a stretch for the Contractor, but achievable.
           

        2. [ At the conclusion of year four, in addition to the year four "Contractor Assessment Report/Performance Indicators and Standards," the Government will prepare a summary report which will set forth the average rating for the first three years' of performance and the year four rating. This summary report will be used to determine if the Award Option for year six has been earned. Likewise, at the conclusion of year five, the Government will prepare a "Contractor Assessment Report/Performance Indicators and Standards" and a summary report of year five to determine if the Award Option for year seven has been earned.]

          The advance evaluation of performance is required to allow adequate time for recompetition of the requirement in the event that Contractor performance does not meet the Award Option requirements. If the Contractor does not earn the first Award Option, there will be no opportunity to earn subsequent Award Option(s) and the contract expiration date will remain unchanged.


           

      1. The "Contractor Assessment Report/Performance Indicators and Standards" described herein contains rating criteria used solely to assess whether the Contractor has earned the Award Option specified in this contract. This report differs from the Contractor Performance Report described in the POST AWARD EVALUATION OF CONTRACTOR PERFORMANCE Article in SECTION G of this contract, which uses a standard rating criteria established for the Federal Contractor Performance System to evaluate overall contract performance. For this reason, the Contractor's performance scores for determining authorization of the Award Option(s) may differ from the Contractor's performance scores for overall contract performance.  




    1. Changes to the Contractor Assessment Report/Performance Indicators and Standards

      Unilateral changes to the Contractor Assessment Report/Performance Indicators and Standards may be made if the Contractor is provided written notification by the Contracting Officer at least 30 days before the start of the upcoming evaluation period. Changes affecting the current evaluation period must be by mutual agreement of both parties.


       

    2. Contractor Performance Assessment

      The Contracting Officer's Representative (COR), and other Government personnel as appropriate, will use the "Contractor Assessment Report/Performance Indicators and Standards" and the associated performance elements and standards to score contract performance for the Award Option determination. The Contracting Officer is responsible for making the final decision on the Contractor's score and for determining whether the Contractor has earned the Award Option.


       

    3. Contractor Performance Evaluation

      The COR, and Contracting Officer will prepare reports required by FAR 42.15 and described in the POST AWARD EVALUATION OF CONTRACTOR PERFORMANCE Article in SECTION G of this contract to determine the Contractor's overall contract performance. Unless specifically identified as a rating criterion in the "Contractor Assessment Report/Performance Indicators and Standards," this evaluation report will not be used in the Award Option determination.



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****(USE BELOW WHEN CONTRACT REQUIRES A SUBCONTRACTING PLAN (All Contracts OVER $700,000 - OR $1.5 million for construction of Public Facilities) EXCEPT SMALL BUSINESS CONTRACTS.)

ADDITIONAL INFORMATION TO COMPLETE THIS ARTICLE:

  • Last Paragraph: Select appropriate contact from bracketed information within the paragraph; Insert e-mail address for the Government contact; and Select the appropriate title for the Government contact from the bracketed information.)****

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